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UberX legalised in NSW

The NSW cabinet has signed off on legalising ride sharing and putting in place a compensation package which includes payments of $20,000 to owners of taxi licence plates, explains transport reporter Matt O'Sullivan.

Sydney to expect a cool change

UberX legalised in NSW

The NSW cabinet has signed off on legalising ride sharing and putting in place a compensation package which includes payments of $20,000 to owners of taxi licence plates, explains transport reporter Matt O'Sullivan.

Uber's General Manager for Australia, David Rohrsheim, has warned passengers once again about its surge pricing model whereby fares are set to rise by 2.5-3.5 times the normal price in order to cope with increased demand.

Last year, Uber came under fire as passengers were caught off guard by the rise in prices. In one case a passenger unknowingly paid $213 for an Uber Black (chauffeur-driven luxury vehicle) from the CBD to Coogee.

"Our strategy won't change from last year. We are as upfront as we can possibly be in terms of dynamic pricing, and we suggest individuals plan accordingly," Mr Rohrsheim said.

"We don't think there will be any problems this year. There's a lot more awareness amongst the public of how we work compared to 12 months ago, so I don't think there will be many surprises this time."

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UberX, the company's most used platform where drivers pick up fares in their own personal vehicles, became legalised in New South Wales earlier this month. In legalising UberX​, the state government announced a temporary $1 levy on taxi and ride-sharing services in order to fund a $250 million compensation package for taxi drivers.

"The problem with Uber is that their services get really expensive and they serve the community rich enough to afford them but for those that are not they leave them on the street corner," he said.

Mr Davies said the NSW government sets fixed taxi prices with peak fares kicking in from 10pm on New Year's Eve, as well as a flat $2.50 surcharge.

[I]t's part of providing an affordable taxi service that the community relies upon," Mr Davies said.

The highest Uber rates of fares are expected to occur between 12.30am and 4am.

"My hot tip would be to book an Uber at 11.59 and lock it in before the rush, which causes prices to rise.

"We send reminder text message when fares are back to normal. We also have an option allowing passengers to send an invitation to split the fare with four people." Rohrsheim said.

Uber was also criticised last New Year's Eve for adding a $25 booking fee onto their Uber Taxi service with little warning to its passengers. Rohrsheim was non-committal when asked whether he expects the booking fee to appear this New Year's Eve.

"Thats not something I have foreshadowed or thought about yet, as I'm far more interested in UberX".